Bruno's Has 7,000 Shares Outstanding with a Par Value of £1.00

question 70

Multiple Choice

Bruno's has 7,000 shares outstanding with a par value of £1.00 per share and a market value of £12 per share.The statement of financial position shows £7,000 in the ordinary equity account,£58,000 in the additional paid in capital account and £32,500 in the retained earnings account.The firm just announced a 50% (large) stock dividend.What is the value of the additional paid in capital account after the dividend?

• A)£58,000
• B)£61,500
• C)£87,000
• D)£96,500
• E)£100,000

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